Take Absolute Coverage and Protection as a Renter

Living in peace and debt-free is worth it. Learn more as we dive on “Take Absolute Coverage and Protection as a Renter.”

Choosing between spending money now or setting it aside for future needs is a common challenge, and it’s especially relevant today. While holding off on buying a high-definition 4K TV or delaying that dream getaway to Hawaii might be smart financial moves, one area you shouldn’t skimp on is getting renters insurance.

Picture this: you arrive home after a long day at work, only to discover your apartment has been burglarized. Your valuable stereo system and fine dinnerware are missing. Or, worse, you return from a weekend trip to find your kitchen has been damaged by fire. It’s important to realize that your landlord is unlikely to cover the cost of any lost or damaged items. You’ll need renters insurance to recover your financial losses.

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Surprisingly, renters insurance is often overlooked. Nearly 80% of renters do not have any form of renters insurance—a shocking statistic when you consider that coverage generally costs between $150 and $300 annually, depending on your location. Given the affordability, renters insurance is a wise investment for anyone leasing a house, apartment, condo, or similar residence.

Take Absolute Coverage and Protection as a Renter

How Much Insurance Coverage is Necessary?

The first step in getting a renters insurance policy is determining the total value of everything you’d want to replace in the event of theft or damage. This includes clothing, electronics, furniture, and appliances. It’s a good idea to document the serial numbers of major appliances and devices. For added security, keep a copy of this inventory somewhere outside your home, such as at work. Additionally, you may want to photograph or create a video of your most expensive possessions. This will make filing a claim easier if any items are stolen or destroyed.

One key decision is whether to choose “Actual Cash Value” (ACV) coverage or “Replacement Cost” coverage. ACV policies pay based on the value of your belongings at the time of loss. For example, if a tree damages a four-year-old computer that originally cost $2,500 but is now worth $1,000, you would receive $1,000 (minus the deductible). In contrast, replacement cost coverage would compensate you based on what it would cost to replace that item at today’s prices. Although this coverage option comes with higher premiums, it offers more substantial reimbursement if you need to file a claim.

Other Types of Coverage Available